The global semiconductor equipment market is on track for substantial expansion, projected to achieve an estimated value of US$126.40 billion by 2023, exhibiting a robust Compound Annual Growth Rate (CAGR) of 9.90% throughout the forecast period. This growth is underpinned by key drivers, including the burgeoning consumer electronics sector, the increasing integration of semiconductors in medical devices, and a rising wave of government backing for the industry.
Semiconductor equipment plays a pivotal role in the production of semiconductors and integrated circuits, essential components utilized in diverse industries such as medical, banking, telecommunications, and automotive. As these industries undergo continuous evolution and innovation, the demand for semiconductor equipment experiences a notable surge.
Segmentation
The global semiconductor equipment market is segmented into three primary categories: Wafer equipment, Assembly and packaging equipment, and Test equipment. The wafer equipment segment, fueled by technological advancements and escalating demand for silicon wafers, holds the majority of the market share.
In terms of the supply chain, the market is divided into three segments: Integrated Device Manufacturer (IDM), Outsourced Semiconductor Assembly and Test (OSAT), and Foundry. IDM, with the largest market share, is projected to be the fastest-growing segment during the forecast period.
Dimension-wise categorization includes 2D, 2.5D, and 3D. While the 2.5D dimension packaging segment currently dominates the semiconductor equipment market, the 3D dimension segment is experiencing rapid growth due to substantial investments in research and development.
Regional Insights
Geographically, the Asia Pacific region leads the global semiconductor equipment market, driven by the dominance of key players in countries like China, Taiwan, and South Korea. China, in particular, has emerged as the world’s largest semiconductor equipment market, poised for solid growth across various sectors.
North America and Europe are emerging markets for semiconductor equipment, propelled by technological advancements and government support for the semiconductor industry.
Top Impacting Factors
Growth Drivers:
- Growth in Consumer Electronics Industry
- Increased use of Semiconductors in Medical Devices
- Mounting usage of semiconductor equipment in the Gaming Industry
- Rising Government Support
Challenges:
- Functional Defects and Complexities
- High Cost Associated
Trends:
- Increasing demand for Artificial Intelligence
- Escalation of Internet of Things (IOT)
- Surging Demand for Electronic Vehicles
- Emerging Industrial Robotics
Key Players
The global semiconductor equipment market is dominated by the top five players, accounting for over 60% of the market share. Key players include Hitachi High Tech Corporation, ASML Holding Semiconductor Company, Applied Materials Inc., Lam Research Corporation, Tokyo Electron Limited, KLA Corporation, Teradyne Inc., Nikon Corporation, Canon Inc., Screen Holding Co. Ltd, Advantest Corporation, and ASM International N.V.
The global semiconductor equipment market is poised for remarkable growth, driven by factors such as the growth of the consumer electronics industry, increased use of semiconductors in various applications, and rising government support. As technology continues to advance, the semiconductor equipment sector is expected to play a crucial role in meeting the growing demand for semiconductors worldwide.